Synopsis
US-based Ayr Energy is in talks to raise $25–30 million from Energy Impact Partners, which could value the startup at around $200 million. Founded by former Zetwerk and Ather Energy executive Anirudh Reddy, the company is betting on rising power infrastructure demand driven by artificial intelligence workloads and data centres.Listen to this article in summarized format
A deal with the investor would give the startup a valuation of around $200 million, they said.
The Silicon Valley-based company was founded by former Zetwerk and Ather Energy executive Anirudh Reddy and former McKinsey consultants Rahul Arora and Yash Takallapalli.
Energy Impact Partners is a $4.5-billion investment fund that backs companies in the energy and industrials space through venture capital, growth equity, private equity and credit vehicles.
Ayr Energy, backed by General Catalyst and 3one4 Capital, had emerged from stealth in September 2025 with over $250 million in contracts that represented more than 10GW of new power. The company had raised $3.5 million in seed capital.
People familiar with the discussions said Ayr Energy is betting on a structural uptick in power infrastructure demand, as artificial intelligence workloads and data centre expansion drive up electricity consumption and strain existing grid capacity.
Reddy and Energy Impact Partners did not respond to request for comment.
Ayr Energy serves customers across segments including renewables, oil and gas, utilities and industrial. It manufactures power and distribution transformers, special-purpose transformers, high-voltage circuit breakers and medium-voltage switchgear, putting it in direct competition with legacy manufacturers as well as Chinese equipment suppliers.
The startup has six manufacturing locations in India – Vadodara, Ahmedabad, Prayagraj, Mumbai, Chennai and Hyderabad.
At the time of its launch in September last year, Neeraj Arora, managing director at General Catalyst had said, “Ayr Energy is bringing innovation to an industry that has remained largely unchanged since the first transformer was invented in 1885. We believe the team is reshaping the market for critical energy infrastructure in the electric era with its full-stack approach, spanning design, engineering, manufacturing, delivery and service.”
Shortly after its launch, the startup faced a lawsuit in the US from Reddy’s former employer, Zetwerk, which alleged theft and misuse of its trade secrets and proprietary business information.
According to the lawsuit, which ET had reported in October, some former Zetwerk executives who had access to highly confidential information were allegedly solicited and hired by Ayr Energy. It also claims that Reddy, a former senior executive in its energy business, incorporated Ayr Energy in 2024 while still employed with Zetwerk.
Zetwerk had also argued that Ayr Energy building an order book of over $250 million within months of the employee departures could only have been achieved through unlawful use of its confidential data.
